Companies that have stockpiled more goods during the coronavirus pandemic are turning to creative strategies to put inventory to work and generate cash. Adding to inventories, companies stocked up on goods and raw materials to ward against shortages caused by snarled transportation routes and other supply-chain difficulties. Mei Yee Pang, who leads the global supply-chain practice at DHL Consulting, said transportation constraints have helped push companies to add more inventory. Executive Chairman Kamel Alzarka said companies showing interest recently include telecommunications and technology firms that tend to use high-value parts. Another method companies are turning to is asset-based lending, in which firms use inventory as collateral to secure loans.

Source: Wall Street Journal August 08, 2020 12:00 UTC